cash-on-cash return

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Cash-on-cash return

A method used to find the return on investments when there is no active secondary market. The yield is determined by dividing the annual cash income by the total investment. See: Current yield or yield to maturity.

Cash-on-Cash Return

A way to calculate the rate of return on an investment, especially in real estate. One calculates the cash-on-cash return by dividing the cash inflow on the investment in a given year by the cash outflow originally made. For example, if one buys a property for $100,000, this amount is the denominator when calculating the cash-on-cash return each year.

cash-on-cash return

See cash-on-cash.

References in periodicals archive ?
According to OMNI Brokerage, the average cash on cash return of TIC interests was 7.0%-7.5% in the previous quarter.
At the time of the acquisition, the property had a net cash flow, before capital improvements of $476,000, yielding the investors a cash on cash return of 9.2%.
This reduces the cash flow to $175,000, reducing the cash on cash return to 3.4%.
Now, as 1992 unfolds and we continue the slow but demonstrable path to recovery, we are left unable to agree upon a standard by which to accurately judge value: asset value as measured by price per square foot, cash on cash return or IRR analysis, that thoroughly discredited measure of the time value of money?
The third major method of evaluation is known as the cash on cash returns approach, or cash flow analysis.